Known for playing matriarch Emily Gilmore for seven seasons of “Gilmore Girls,” Kelly Bishop spoke with “CBS Mornings” about the beloved show, her controversial character and how she coped after the death of her husband.

“I loved the role. I loved the writing,” Bishop said of the show. She says that because women “were taught to be good little girls, be ladies,” some actors find it difficult to play someone who isn’t. “I see it occasionally, they’re playing a rough character, but they pull back a little bit because you don’t want to make her too mean — and I’m going, ‘No, no, no, bam! I love it.'”

Although Bishop said she loves to portray complicated characters, she added she could never be friends with Emily.

“Because that’s exactly the kind of woman I wouldn’t want to be around, I wouldn’t like. So if I think she’s horrible, I make her more horrible,” she said.

Bishop also revealed what all “Gilmore Girls” fans want to know: Was she Team Dean, Jess or Logan for the character Rory?

“I am team Logan,” she said. “All the guys were great, and they’re good-looking, and they’re good actors and charming to work with, but there was just something about the way Matt presents himself that I said it’s like the old movie stars.”

On a personal level, the Tony Award winner discussed her new memoir, “The Third Gilmore Girl,” where she wrote about her late husband and how she searched for serenity and peace of mind following his death.

“I found myself a therapist. I’ve been in therapy many, many years ago … but then I found a cognitive behaviorist, which is interesting, and I love this woman and we just sit — it’s like girlfriends talking.”

Beyond “Gilmore Girls,” Bishop is also known for her roles in movies like “Dirty Dancing” and on Broadway for “A Chorus Line,” but she’ll always have a deep appreciation and connection to the series.

“It’s just a really good show. It’s really well written. It’s well cast,” she said. “It’s funny and smart, and there’s a genuine kind of sweetness about it that I think is very appealing. We go back to that.”

Credit card debt is a growing crisis nationwide, with the total amount of credit card debt now sitting at an all-time high of $1.14 trillion, up nearly 6% from one year ago. As the total amount of credit card debt has been climbing, so has the number of late payments and maxed-out credit card accounts, illustrating the financial burden this type of debt can have on cardholders.

One major factor driving this crisis is the high-rate environment. The average credit card interest rate is almost 23% currently, which can significantly increase the cost of borrowing. Inflation also had a major impact on the cost of goods and services over the last few years, leaving people cash-strapped. And in this high-rate, high-cost environment, even those making regular payments can quickly fall behind.

For cardholders in dire financial straits, credit card debt forgiveness (also known as debt settlement) could be a lifeline. Debt forgiveness allows you to reduce your outstanding card balances by settling your debt for a lower amount. While it varies, debt forgiveness could reduce what you owe by 30% to 50%, offering significant relief. However, there are some surprising costs tied to this approach.

Frustrated with your expensive credit card debt? Find out how debt relief could help now.

3 surprising credit card debt forgiveness costs to know

Before pursuing credit card debt forgiveness, it’s important to know these hidden expenses.

Debt relief company fees

One of the most significant costs associated with credit card debt forgiveness are the fees charged by debt relief companies. While debt settlement can be pursued on your own, in many cases, cardholders will use a debt relief company to act as the intermediary between themselves and their creditors to secure the lower payoff amount. While their services can be valuable, they aren’t free.

Debt relief companies typically structure their fees as a percentage of the total debt balance or the amount of debt forgiven. This percentage generally ranges from 15% to 25% of the original debt amount. For example, if you have $20,000 in credit card debt and the company negotiates a 40% reduction, bringing your balance down to $12,000, you might still owe the debt relief company up to $5,000 in fees.

It’s important to note that these fees are charged in addition to the reduced balance you’ll need to pay your creditors. So while you may see a significant reduction in what you owe to credit card companies, the overall savings might not be as substantial once you factor in the debt relief company’s cost. 

Learn more about the debt relief strategies available to you today.

Income tax implications

Another credit card debt forgiveness cost comes in the form of potential tax liabilities. When a creditor forgives a portion of your debt, the IRS generally considers the forgiven amount to be taxable income. This can come as a shock to those who assume that debt forgiveness equates to a clean financial slate.

For example, if you have $30,000 in credit card debt and $15,000 is forgiven through debt settlement, you may need to report that $15,000 as income on your tax return. Depending on your tax bracket, this could result in a significant tax bill come April.

Receiving a large sum of “income” from forgiven debt could also push you into a higher tax bracket, potentially affecting other aspects of your financial life, such as eligibility for certain deductions or credits. So, it’s crucial to factor in the potential tax implications as part of the overall cost-benefit analysis of debt forgiveness.

Higher borrowing costs

While credit card debt forgiveness can provide immediate relief from overwhelming balances, it often comes with a long-term cost in the form of higher borrowing costs. This is primarily due to the negative impact that debt settlement can have on your credit score.

When you settle a debt for less than the full amount owed, it’s typically reported to credit bureaus as “settled” rather than “paid in full.” This notation can remain on your credit report for up to seven years and can significantly lower your credit score. The exact impact varies depending on your credit profile, but it’s not uncommon to see drops of 100 points or more.

A lower credit score translates directly into higher borrowing costs. This affects not just future credit card applications but also mortgage rates, auto loan rates and insurance premiums. While these higher costs are often temporary, as credit scores can recover over time with responsible financial behavior, they still represent a significant consideration. 

The bottom line

While credit card debt forgiveness can help you get rid of your high-interest debt, it’s important to approach this option with an understanding of its costs. The fees charged by debt relief companies, the potential tax implications and the long-term impact on borrowing costs can significantly reduce the net benefit of debt settlement. So before pursuing debt forgiveness, you may want to explore other options such as credit counseling, debt consolidation or negotiating directly with creditors, to determine what makes the most sense for you.